CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
HXL posted Q1 adjusted EPS of $0.59 vs. $0.37 prior year, $0.15 above consensus, on sales of $501.5M (+9.9% Y/Y), beating consensus by $18M. Commercial Aerospace sales rose 18.8% Y/Y to $332.7M, led by A350, A320neo, 787, and 737 MAX programs as destocking pressures abated. The results validate our multiyear thesis on operating leverage, with 59.5% EPS growth on sub-10% sales growth as volumes recover into existing capacity. Management reaffirmed 2026 guidance for sales of $2.0B-$2.1B and adjusted EPS of $2.10-$2.30 despite geopolitical uncertainties. Adjusted operating margin expanded 360 bps Y/Y to 13.5%, demonstrating substantial fixed cost leverage. We believe HXL is well positioned to capture incremental revenue from sole-source contracts without material capacity additions, with line of sight to mid-30s incremental margins through 2027, though sustained progress remains contingent on OEM execution and supply chain stability.